Washington, Dhaka Seal Trade Pact before of Bangladesh Elections
Under the arrangement, exports from the South Asian country will face a 19% tariff — slightly below the 20% rate introduced in August, according to reports.
Muhammad Yunus, chief adviser to Bangladesh’s interim government, stated in a post on X that Washington has agreed to create a special framework allowing certain Bangladeshi textile and apparel products made with US-origin cotton and synthetic fibers to enter the American market duty-free.
Earlier this month, neighboring India concluded its own trade deal with the United States, securing an 18% tariff rate, though without obtaining a comparable concession for apparel shipments.
As part of the agreement, Bangladesh will grant preferential access to American industrial and agricultural exports, including US farm and food products, according to a statement issued by the White House.
The deal also includes immediate tariff elimination on US poultry, pork, seafood, rice, corn, and cereal grains. Duties on additional items — such as almonds — will be gradually reduced to zero over a five- to ten-year period.
In a separate component of the pact, Bangladesh Airlines has committed to purchasing 14 Boeing aircraft. Dhaka will also procure an unspecified quantity of US military equipment.
The agreement, concluded just days before Bangladesh’s upcoming national elections, has generated criticism from various political and economic observers, according to reports.
Bangladesh ranks as the world’s second-largest clothing exporter after China. However, garment exports — widely regarded as the backbone of the country’s economy — have experienced a downturn over the past two years.
The ready-made garment industry accounts for more than 80% of the nation’s export revenues, employs approximately four million people, and contributes close to 10% of Bangladesh’s gross domestic product.
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